Americans have very little knowledge of important health insurance terms, reports the American Institute of CPAs (AICPA). Half of the Americans who responded to the AICPA survey were unable to define terms that are rather important to know when buying a health plan.
At a time when more Americans than ever before will be purchasing health insurance, it is crucial to improve the health insurance literacy of the country. Discount Drug Network is committed to helping you, the health insurance consumer. So, we’ve put together a quiz to test your knowledge of important health insurance terms. Before you start having terrible memories of being stuffed in your locker or getting drilled with a dodgeball during gym class, take a deep breath. This isn’t high school! We won’t punish you for getting any questions wrong!
[rapid_quiz question=”Quick, can you tell me what a co-pay is?” answer=”What you pay up front when you use a medical service.” options=”The monthly payments that you make to your insurance company to receive benefits.|What you pay up front when you use a medical service.” notes=”Correct Answer: What you pay up front when you use a medical service. For example, if you buy a prescription drug, you may be asked to pay $15 or $30, etc. You pay this amount up front and your insurance company pays the rest of the cost.”]
[rapid_quiz question=”What is co-insurance?” answer=”An agreement between you and your insurance provider that splits healthcare costs.” options=”A type of insurance that is paid for 50/50 by you and your employer.|An agreement between you and your insurance provider that splits healthcare costs.” notes=”Correct Answer: An agreement between you and your insurance provider that splits healthcare costs. For example, you may have an 80/20 split. In such an agreement, your insurance provider will pay 80% of your medical costs, while you pay the remaining 20%. Usually, a deductible must be fulfilled before the co-insurance kicks in. “]
[rapid_quiz question=”A premium? Is that a type of wash package at a car wash?” answer=”No, silly! A premium is what is deducted from your weekly paycheck to pay for your insurance costs. ” options=”No, silly! A premium is what is deducted from your weekly paycheck to pay for your insurance costs. |Wrong! It’s actually a type of insurance package that is provided by an insurance company.” notes=”Correct Answer: No, silly! A premium is what is deducted from your weekly paycheck to pay for your insurance costs. “]
[rapid_quiz question=”A deductible? What the heck is that?” answer=”The fixed amount of money that you must pay on healthcare expenses before your insurance benefits kick in.” options=”The fixed amount of money that you must pay on healthcare expenses before your insurance benefits kick in.|The amount that is deducted from a health expense to cover taxes and other fees.” notes=”Correct Answer: The fixed amount of money that you must pay on healthcare expenses before your insurance benefits kick in. A plan with a high deductible, but a low premium means that less is taken out of your paycheck, but it also means that if an emergency happens, you’ll be stuck paying a very high deductible before insurance takes over. Likewise, a high premium, low deductible plan means that your paycheck takes a bigger hit, but you won’t pay as much when you do need to visit a doctor or clinic.”]
[rapid_quiz question=”Hmmm, now I’m thinking of tax time…what’s a dependent?” answer=”Anyone who relies on you for support or health coverage, such as your children, or a non-working spouse.” options=”A pre-existing condition that your health coverage ”depends” on to determine the rates you will pay.|Anyone who relies on you for support or health coverage, such as your children, or a non-working spouse.” notes=”Correct Answer: Anyone who relies on you for support or health coverage, such as your children, or a non-working spouse. If you got this wrong, I have a feeling that the IRS would like to talk to you!”]
[rapid_quiz question=”Now you’re throwing crazy acronyms at me…what on earth is an HMO?” answer=”A prepaid health plan that covers a variety of services.” options=”A prepaid health plan that covers a variety of services.|A tax that is added to your health costs; it is used to subsidize healthcare for the poor.” notes=”Correct Answer: A prepaid health plan that covers a variety of services, including doctor’s visits, emergency room trips, and x-rays. It stands for ”health maintenance organization.””]
[rapid_quiz question=”Tell me what a health savings account (HSA) is!” answer=”An account that allows you to save up tax-advantaged money for medical expenses.” options=”An account that allows you to save up tax-advantaged money for medical expenses.|An account set up by an insurance company that tracks your healthcare spending habits.” notes=”Correct Answer: An account that allows you to save up tax-advantaged money for medical expenses. However, you must enroll in a high deductible health plan (HDHP) before you can qualify to open a health savings account. One advantage of a HSA is the fact that funds saved in an account roll over from year to year, unlike some other health accounts. This allows you to save up money for an unexpected and perhaps catastrophic medical event that could cost a large amount.”]
[rapid_quiz question=”What is Medicare?” answer=”A government sponsored health insurance plan that covers the elderly.” options=”A government sponsored health insurance plan that covers the elderly.|A government sponsored insurance plan that covers families with more than 3 children.” notes=”Correct Answer: A government sponsored health insurance plan that covers the elderly.”]
[rapid_quiz question=”Now you know what Medicare is, but what is Medicaid?” answer=”A government sponsored health insurance program for the poor.” options=”A government sponsored health insurance program for the poor.|A government sponsored health insurance program for federal workers.” notes=”A government sponsored health insurance program for the poor.”]
If you got more than a couple answers correct, you’re probably more knowledgeable of important health insurance terms than most other Americans. Give yourself a pat on the back!
You can access a full, comprehensive list of insurance terms courtesy of MedPlanAccess.
